Boyd Group Income Fund, parent company to U.S.-based Gerber Collision & Glass, Glass America, Hansen Collision and Glass among others, is acquiring Schaumburg, Ill.-based Netcost Claims Services (NCS), an automotive glass claims administrator for insurer companies.
NCS was founded in 2000 and has about 80 employees, with about 70 capable of handling automotive glass claims.
NCS expands Boyd Group’s existing third party administration business, Gerber National Glass Services (GNGS), that offers first notice of loss, automotive glass and related services through its network of automotive glass providers across the U.S. third party administrators (TPAs) that serve the fleet management and insurance-funded segments of the automotive glass repair industry by providing a complete outsourced solution from the time that a claim is made, according to a company statement.
Both NCS and GNGS then manage the claim to ensure that the necessary repairs are completed in a quality manner and at a competitive price. NCS also offers roadside assistance services and has the additional benefit of owning and operating its own call center, according to officials.
“This is a very important development that will enhance our current glass repair business and enable our U.S. auto glass business to grow its relationship with its fleet management and insurance industry customers.” says Brock Bulbuck, president and chief executive officer of the Boyd Group. “The addition of a call centre to the GNGS network of 3,000 independently-owned auto repair locations in the U.S. will considerably strengthen our value proposition.”
The total purchase price consideration of approximately of $3.0 million, subject to post closing adjustments, will be funded through a combination of available cash and seller financing.
“NCS began as a nationwide automotive glass claim administrator offering America’s finest network of professional, independent glass vendors,” according to the company’s website.
NCS is a nationwide claims administrator servicing insurance and fleet clients’ needs with a full menu of claim handling services, according to NCS’ site.
The parent company to Gerber Collision & Glass and Glass America has been on a buying spree. The company recently signed an agreement to acquire 25 collision repair centers in Illinois, Indiana and Florida under the trade name Collision Revision. The collision centers outsource AGRR services.
In September 2013, the company acquired HC Capital Group, which owns and operates 25 collision repair centers under the Hansen Collision and Glass trade name in western Michigan and northeastern Indiana.
Gerber Collision & Glass has opened several new centers throughout the U.S. this year in Illinois, North Carolina, Maryland and Arizona.
Boyd Group purchased a controlling interest in Glass America in June 2013.
Boyd Group reported a 41-percent increase in sales to $183.6 million for the first quarter, compared to sales of $130.6 million in the same quarter of the prior year. The glass business contributed incremental sales of $11.5 million, primarily attributable to the acquisition of Glass America, according to officials.
Stay tuned to glassBYTEs.com™ for more on the NCS acquisition as it becomes available.